FOREIGN

REINSURANCE
BRANCHES
Presented by
Sourav Kumar Ritolia 2123071
Aditi Ranjan 2123069
Vikas Rathor 2123070
Reinsurance Basics:
 Introduction:
Reinsurance is insurance that is purchased by an insurance company
from a reinsurer. It is means of risk management, to transfer risk from the
insurer to reinsurer.
 Definition:
Reinsurance is the process in which a ceding company cedes part of the
risk to a reinsurer.
Cedant or ceding company is the direct insurance company that transfers
the risk.
Cede (in insurance terminology) is the transfer of risk.
Reinsurer is the insurance company that accepts the transfer of the risk
from the ceding company.
Reinsurance history in India:
In India, in the year 1956, Indian Reinsurance Corporation, a professional
reinsurance company, was formed by some general insurance companies
operating in India and it started receiving voluntary quota share cessions from
member companies.
In 1961, Government of India made it mandatory on the part of every
reinsurer to cede certain percentage of their business to approved Indian
reinsurer's to General insurance corporation of India. the big four holding
companies are.
1) National Insurance Company Ltd.
2) New India Assurance Co. Ltd
3) Oriental Insurance CO. Ltd
4) United India Insurance Co Ltd
Initially received business ceded by four companies, but now four
companies act as independent and autonomous bodies and general insurance
corporation of India is reinsurance company.
■ Reinsurance Functions:
1) Increases stability and security: As we have said, the major function of
reinsurance companies is to spread out risk. This is especially in the case of an
unusual or widespread loss event, such as a Hurricane & Tornado.
2) Increases depth and width of coverage. When an insurance company is secure
and stable, and when it is protected well for all manner of loss events, it can
afford to offer more insurance policies. Also, it can offer a wider range of
insurance policies, thus improving business.
3) Helps with analysis and decision-making. A reinsurance company won’t simply
take an insurance company on as a partner. It needs to know that the investment is
worthwhile. The reinsurance company will help the insurance company evaluate its
reinsurance needs, devise an effective reinsurance plan, and analyze risks and risk
pricing.
4) Helps with expansion. Because reinsurance companies provide security and take
on risk, they give insurance companies the opportunity to expand their business
through launching new products and services.
Need of Reinsurance:
1)Underwriting Assistance:
2) Capacity:
3) Financial:
4) Stabilization:
5) Marketing Tool:
6) Catastrophe Control:
7) Withdrawal:
 SWISS RE
 Swiss Re has received the approval from the IRDAI to open a branch in Mumbai with the
composite branch license.
 Swiss Re to open new India branch effective 1 February 2017.As a reinsurer, Swiss Re has
served Indian insurers for over 87 years.
 The Indian insurance sector is poised for strong growth with an average annual growth rate
of 8 percent from 2017 to 2025.
■ Swiss Re will capitalise on its more than 150 years of insurance knowledge, act as a trusted
partner to the industry, lend support in pricing, product development, risk mitigation, risk
management, claims handling, technology development and data analytics to the insurance
market in India.
■ The Group consists of the following three business units:
• Reinsurance
• Corporate Solutions
• Life Capital
■ When a Lloyd’s managing agent sets up a service company on the Lloyd’s India platform, their team will be
able to underwrite reinsurance business as an onshore reinsurer in India.

■ Lloyd’s underwriters are also able to underwrite Indian reinsurance business on a cross-border basis, but
under the IRDAI (Order of Preference) Regulations any cross-border access is only after the onshore
reinsurers have been first offered the reinsurance business. This underscores the significance of having an
onshore presence in India.

■ Exceptions
 Residents in India may remit funds for securing healthcare insurance with an overseas insurer in certain
circumstances.   

 Risks situated in Special Economic Zones (SEZ).

 Special approval by the Insurance Regulatory and Development Authority (IRDA).

 Marine cargo insurance, which may be insured outside India in accordance with terms of trade.

■ Further details on these exceptions can be found on Crystal.

■ Lloyd's in India covers 57 lines of insurance and reinsurance:

■ Our story in India
■ The Lloyd’s market has a long history of doing business with India – first mentions of trading between Lloyd’s and India have been found
in the historical records of the Lloyd’s Coffee Shop and Edward Lloyd as early as 1688.

■ With the growth of the market and the need for reinsurance, we set up our reinsurance branch in Mumbai in April 2017. Given our
expertise in complex and specialist risks, we aim to help support and protect India’s economic growth, particularly in risk classes
identified as of primary importance in India – namely agriculture, infrastructure and disaster management.

■ Our work in the community

■ Lloyd’s is committed to improving lives and building resilience in the local community. Through the Lloyd’s Together programme we
support local communities with projects that focus on education and employability, environment and sustainability, social welfare and
health and disaster preparedness and relief.

■ In India, Lloyd’s has partnered with United Way in Mumbai to support the Sion Anganwadi community in Mumbai.

■ Our solutions
■ Licence
■ Lloyd's India is licensed by the Insurance Regulatory and Development Authority of India (IRDAI) as a branch of Lloyd’s UK, to write
reinsurance business in India. The licence allows Lloyd’s managing agents to set up a service company in India, and underwrite
reinsurance business in India.

■ Lloyd’s India is not allowed to write insurance business in India. Lloyd’s underwriters are also not licensed to write insurance in or from
India.
■ Hannover Re in India - Property & Casualty
■ Hannover Rueck SE – India Branch started operations as of 1st of February 2017. The Indian regulator IRDAI granted the important approval of
the license (R3) in December 2016. Our team offers treaty and facultative reinsurance. The territorial mandate of the Branch is India.

■ Following are the Insurance Segments for which the branch will underwrite reinsurance business:

■ • Fire
• Marine and Energy
• Health, Personal Accident & Travel
• Motor
• Aviation
• Engineering
• Liability including Financial Lines
• Agriculture
• Extended Warranty
• Surety
• Other Miscellaneous.

■ Hannover Re in India - Life & Health

■ Hannover Rück SE – India Branch (Hannover Re India) is well-known for being a receptive, undogmatic and flexible business partner. It is our
philosophy to create mutually beneficial business relationships, and we are often one step ahead of our competition when it comes to innovative
products and solutions. Our specialties include:

■ Product design
■ Hannover Re India develops excellent and innovative product propositions, in particular protection products, which are frequently tailored to the
specific needs of our clients. We are proud to be among the first few reinsurers in India to support second generation critical
■ illness (CI) and disability products such as multi-pay CI, tiered/staged CI, dengue care, vector-borne
diseases and diabetes care.

■ Timely response
■ Our turnaround and response times are amongst the best in India and reflect our undogmatic and non-
bureaucratic approach when dealing with client requests.

■ Experience studies
■ Hannover Re India offers “know-your-portfolio” services to its Indian clients. Our service approach is
unique in the market and ensures win-win situations for both parties.

■ Financial solutions (Fin Re)

■ Hannover Re India’s services include supporting clients with the development of tailor-made financial
solutions. Thanks to Hannover Re’s vast international expertise in this domain, we are well-equipped to
assist clients in meeting their financial objectives within the regulatory boundaries.